zdl_cryptofandomcom-20200214-history
Binance
Basics * Since 2017 * In July 2017, Binance launched, just after raising $15 million in an initial coin offering for its own token, BNB which is based on Ethereum; users of the token receive a 50% discount on transaction fees. * Announced it's own chain since 2018, called Binance Chain to go with BNB. Has gone live (18-4-2019) * Binance is currently a Cayman Islands based company. Binance has launched (4-2019) its Singapore fiat-to-crypto exchange, its third after exchanges in Uganda and Jersey * Reportedly asks 100.000$ for listing a new coin. Binance Chain * Binance announced that it has successfully deployed the genesis block of Binance Chain and plans to execute mainnet swap on April 23. Binance DEX is built on top of Binance Chain with a native Binance Coin (BNB) token. Binance Chain uses Delegated Byzantine Fault Tolerance (dBFT) as its consensus mechanism. * All 11 pre-selected validators are now online to produce blocks with consensus from the genesis block. The Binance Chain explorer and wallet will be open to public access around April 23. Binance said that no trading pairs will be listed until the first batch BNB conversion has occurred. Changpeng Zhao (CZ) tweeted that he made the first transaction on mainnet. * "Loom PlasmaChain & Loom Wallet Are Now Interoperable with Binance Chain — Bringing an ERC20–BEP2 Bridge and Smart Contract Functionality to Binance" ''(7-2019) * Social platform Mithril has announced that it will migrate its token from the ERC-20 format to Binances new BEP2 token following the earlier launch of Binance Chain; Mithril, which partnered with Binance to be the first token to migrate to the new chain, highlighted the benefits of the Binance DEX as a reason for the move. * Has released a Bitcoin-pegged token, BEP2 , on its DEX Binance Chain to increase liquidity and volume; Binance noted that the use of Bitcoin decreased decentralization on the DEX but increases auditing capabilities versus other ledger styles. The post states that BTCB are 100% backed by bitcoin, with the reserves easily visible as they are recorded on the public blockchain. Binance noted that using bitcoin as a backing asset for the new token allows for more convenient audits Binance Coin (BNB) * Launch: 25-7-2017 * Supply: 197,192,382 BNB * Token to be used on the Binance (decentralized) exchange which gives you 50% discount on the trading fees * Has grown into it's own chain; Binance Chain, which will try to get other projects over from chains like Ethereum. * Verasity moved (4-7-2019) from Ethereum to Binance Chain. BNB ICO * From Token Tuesday (8-10-2019): "''Binance released its whitepaper in June 2017, outlining an ambitious goal to build a world-class digital asset exchange. The project successfully raised $15M in July of 2017 with BNB set at a base conversion rate of $0.10 per token (1 ETH = 2700 BNB)." * Allocation: 50% ICO, 40% Founding Team, 10% Angel investers Token Use cases * From Token Tuesdays (8-10-2019): "Trading discounts First and foremost, BNB can be used to cover maker and taker fees when trading on a Binance exchange." Lottery Tickets Binance’s Lottery System determines IEO eligibility based on the amount of BNB held in any given wallet throughout a predefined window of time. It’s important to note that the larger your BNB holdings, the more lottery tickets you will receive. This does not guarantee access but rather increases the chances that you will be able to participate in the sale (in rare cases more than one time). Similarly, the amount of BNB required to receive a lottery ticket along with the number of lottery tickets earned is changed on a case-by-case basis." Community voting Binance recently picked up community voting again with a new spin. Rather than having voting be tied to one vote per account, the new system ties token ownership to voting weight. Similar to the layout for the Lottery tickets, the more BNB you hold, the more votes you receive. Furthermore, there are only two coins competing against one another, rather than a slew of projects with little to no attention. Generally speaking, the thought here is that this system makes it much easier to distinguish if whales (otherwise known as traders with large BNB holdings) would be interested in trading a specific proposed token. Similarly, strong supporters of a given project would be likely to go out of their way to accumulate more BNB seeing as the voting is no longer equal across the board. While the ethics behind this schema may be debated, this method of community voting will likely inquire a strong demand for BNB than previous methods. '' DEX Transactions ''This past year marked the launch of Binance Chain, a native chain in which BNB is used to process all transactions on the network. This was largely due to the development of a native decentralized exchange (DEX) which saw many stagnant ERC or NEP tokens migrating to the BEP standard in the hopes of capturing more trading volume. Binance continues to influence the use of the DEX by signaling that projects with *significant* volume on the DEX has a strong chance of being listed on the main site. It only seems logical as those with the most volume on the DEX are also generating the most income to Binance in the form of BNB transaction fees." Burnings * From Token Tuesdays (8-10-2019): "As originally outlined in the whitepaper, the company is scheduled to burn BNB every quarter based on the amount of total trading volume over the past 90 days. On average, Binance has burned 0.78% (1,557,906 BNB) of the total supply per quarter. If this held true for the remainder of the burning events moving forward, Binance will hit its 100M BNB burning allocation between July and October of 2033. Seeing as the BNB being burned is coming from the team internal reserve, these events do not have a direct correlation on price as if they were purchased off the open market. With this being said, burn events can still be seen as a long-term value driver behind Binance Coin as scarcity plays an increased role as time goes on." * Binance quietly updated their white paper with significant revisions surrounding Binance Coin burnings; according (18-4-2019) to The Block, who spoke with Binance CEO Changpeng Zhao, the white paper's language was clarified for legal and descriptive reasons; commentators say the language change most likely reflects securities concerns, but would have little effect on any regulators assessments. * In 2019, the team burned a total of 5,321,482 BNB (US$207,338,000) burned. This is up from $120,000,000 worth of BNB burned at the end of 2018. * A twitter thread on 21-1-2020 further went into the numbers and concluded: "My theory is that Binance is just burning more BNB because they already have it in treasury anyway (why not?) and if they burn more, it gives them more headlines and the appearance that Q4 was really successful. Which, if you look at all the data, just can't be possible" IEO's * From Token Tuesdays (8-10-2019): "For those unfamiliar with the Initial Exchange Offerings (IEOs), Binance was at the forefront of a revived utility token fundraising mechanism that gained traction throughout 2019. In short, rather than a team conducting an Initial Coin Offering (ICO) and then listing on a reputable exchange, IEOs takes the entire process in-house. Historically, Binance IEOs have offered more advantageous deal structures than ICOs in the form of lower hard caps and purchasing limits to further democratize the capital pool. Governance Usage Roadmap Con's and Pro's * From Token Tuesdays (8-10-2019): "Binance’s recent change from a mandated BNB burn using 25% of the company’s profits have been substituted with a far more ambiguous “we will destroy BNB based on the trading volume”. The lack of transparency surrounding the burn events makes it very difficult for traders to know how much BNB will be burned, or how much Binance had made in profit on any given quarter. The last potential concern surrounding Binance is identifying the advantages that Binance Chain offers over other rising smart contract platforms, like Ethereum." Con's * Has KYC for BinanceUS, whereas before sign-ups only required an email. "With BinanceUS now mandating KYC for sign-ups in parallel with the lack of altcoins and other features, US investors have little incentive to move away from other major US exchanges, such as Coinbase." Team, etc. Team * Changpeng " CZ" Zhao; CEO Partners * Uses Trust Wallet as its partner wallet. * Has been talking to Facebook about becoming a Libra node. "Zhao said that Binance is “definitely considering” the option, although a final decision is yet to be made." * Is named as part of the MetaCartel ecosystem (as of 1-2020 on the website) * Verasity and Binance are partners (26-5-2019). Binance Chain Alliance * Verasity is part of it (9-2019). Category:Companies/Organisations